Frequently Asked Questions on Auto Insurance

Believe it or not, reducing your auto insurance premium is up to you.

Here are some tips:

• Drive carefully.
• Get your auto insurance and home insurance with us. You could qualify for a multi-line discount.
• Choose a vehicle with low insurance rates. Generally speaking, the older the car, the cheaper the premium. Get an auto insurance quote and compare the rates for different vehicles.
• Choose a vehicle with low repair costs. It costs less to repair an economy-class vehicle than a luxury vehicle.
• Install a certified anti-theft system. We will reduce your auto insurance premium, no matter how old your vehicle is.
• Increase your Collision and Comprehensive deductibles. The higher your deductible, the lower your premium.
• If your vehicle is old, consider not including Collision and Comprehensive coverage in your auto insurance policy.

To make the right choices when purchasing auto insurance, read Choosing the Right Kind of Auto Insurance.

To drive a vehicle, you must have the following, minimum insurance coverage:

Third party liability

This coverage protects you if you’re involved in an accident and you damage someone’s property, or if you injure or kill someone. According to provincial law, you must have at least $200,000 in third party liability coverage, but most people choose a limit of $1,000,000 or $2,000,000.

Accident Benefits

This coverage protects you if you or someone in your family is injured or killed in an accident, whether it’s your fault or not. It includes supplementary medical, rehabilitation, attendant care, caregiver, non-earner, and income replacement benefits.

Direct Compensation Property Damage (DCPD)

This coverage protects you for damage to your car in an accident that’s not entirely your fault. It’s called Direct Compensation because instead of recovering damages from someone else’s insurance company, you deal directly with us.

For example, if you’re at fault for 50% of an accident, the DCPD covers you for half of the repairs. The other half is covered by the optional Collision portion of your policy, if you bought this coverage. In such an accident, you would also have to pay for half of your deductible.

Uninsured Motorist

This coverage protects you and your family if you’re injured or killed by a hit-and-run driver, or by the driver of an uninsured or unidentified automobile.

It also covers your automobile and its contents for damage caused by an identified, uninsured motorist, and it is subject to a deductible.

Other coverage is optional, but is often required by insurers when you purchase or lease a vehicle. To find out more, read Choosing the Right Kind of Auto Insurance.

Yes, you can still be sued, whether or not you have insurance. Without auto insurance, you would be personally responsible for the damages that you caused in an accident. Insurance covers these damages on your behalf, up to the limits outlined in your policy.

To make the right choices when buying auto insurance, read Choosing the Right Kind of Auto Insurance.

If you lend your car, you also lend your insurance. If anything happens, your friend will be covered under your auto insurance policy, as long as he or she has a valid driver’s license and meets the other conditions of your policy.

If your friend is involved in an at-fault accident while driving your car, it could affect your premium.

If you lend your car to someone, remember that your auto insurance coverage may not apply if he or she does not have a valid driver’s license.

“No fault” insurance refers to Accident Benefit coverage that is available to you even if you are entirely at fault for an accident. You can claim these benefits from us under your policy. It also refers to Direct Compensation Property Damage, where under your policy, you can claim from us the damage caused to your vehicle, to the extent that you are not at fault for an accident.

“No fault” doesn’t mean that you’re not responsible for an accident. It just means that we will handle your claim no matter who’s at fault in the situation. For example, if you’re rear-ended by someone, the other person would be at fault for the accident, but you would deal directly with us instead of with the other driver’s insurance company.

Yes, it’s the law.

• If you get caught driving without auto insurance in Canada, you’ll be fined.
• If you damage someone’s property, or you injure or kill someone and you are sued, you’ll have to pay for the damages in full.

Before you buy auto insurance, read our tips Compare and Choose Your Auto Insurance.

It depends on how much you increase them. The higher your deductible, the lower your premium.

If you choose Standard coverage, you can save hundreds of dollars on your auto insurance premium by increasing the Collision and Comprehensive deductibles.

To find out more about this topic, read The Impact of Your Deductible on your Premium.

Where you live is one factor that affects the cost of your auto insurance.

Generally speaking, drivers who live in a city pay higher auto insurance premiums than those who live in the suburbs. There are several reasons for this:

• More traffic increases the risk of accidents.
• There's a higher risk of vehicle theft.
• Vandalism is more common.

For tips on how to save on your insurance, read Tips to Save on Home and Auto Insurance Premiums.

To get an auto insurance quote, use our online quote request form or contact us.